OptiBiotix Health Share Price (OPTI)

The other thing overlooked re payment lead times is the once-off impact covid had on businesses of all sizes for the payment period in question.

62% of all small businesses experienced either an increase in late payments and/or had payments frozen
completely as a result of COVID-19
Source - Federation of Small Businesses

As an aside, due to the time taken from the close period and the issuing of the annual / interim report any issues in collecting debts should be reported in post period events.

Elrico.

It's a very valid question and one I analyse as it 1. If a company manages receivables well they tend to have good overall controls and process 2. Shows that the board see cash as a key kpi 3. Is an indicator they have secured contracts on good terms especially with retailers who know how to squeeze margin and cash.

As I've said it is difficult to tell these from 1. the lack of reporting required at interims, the full annual report does provide a better indication due to notes to the accounts 2. Optis business model where invoicing / revenue recognition are backdated in the reporting period and not due.

Skid,

Aligned, friend. This is one of the points I made some time ago, and I'm not an accountant. Debtors numbers should increase as sales and invoices increase, more so under new accounting rules. Caveat; assuming all invoices are paid. :)

Mol.
You clearly haven't much clue on this issue.
Debtors will be made up of 1. invoices (Due to the back loading of revenue / invoice generation in the 6/12 month period on probably 30-90 days payment terms) 2. Royalty / other contracts where the amount is agreed with customers after the sales ledger has closed it the general ledger hasnt.
I haven't said invoices which will not be contractually due and paid shouldn't be issued.
If you have £1m of revenue all of which is raised in the last month and not due for payment and showing outstanding at £1m the calculation as you say is 180 days even if the whole £1m is then actually paid in 30 days - every finance person knows to treat this calculation with care. You also have to 1. adjust for vat 2. Possibly understand the impact of sale or return type contracts.
As I've said hopefully an equalization of invoices through the year will help in future, but as you say should be an area for analysis.